(Almost) Free business banking -  as long as you keep your balance over £5k, there are no account fees @ Metro bank
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(Almost) Free business banking - as long as you keep your balance over £5k, there are no account fees @ Metro bank

30
Found 16th Nov
Looking at setting up a a business and found all banks are charging for business bank accounts (although can't understand the rationale for doing so - they make money off someone if they go into overdraft, or if they are positive).

Then came across this - as long as you keep your balance over £5k, there are no account fees. There is a limit to free transactions - 50 in a month, above which there is a fee of 30p per transaction (about the same as most others).

You could also use the card for free purchases and cash withdrawals in Europe, an added bonus.

Hope it helps someone!

30 Comments

but for how long? im sure they will start charging you after 18/24 or so months

Just move to another competitor if they do start applying more charges.

kamran95589 m ago

but for how long? im sure they will start charging you after 18/24 or so …but for how long? im sure they will start charging you after 18/24 or so months



Perhaps they just expect your balance to drop below £5,000 (at which point they could charge as other banks do) but as far as I can see, it looks like a great business account, even if only for a couple of years whilst getting a new business off the ground. Many years ago it really annoyed me that we had to pay the bank whenever we paid in - they had our money to invest for goodness sake so they were making profit twice. Well done OP for finding an account that doesn't charge! Heat added.

Hot from me. Good Deal OP

Cater allen could be an option

Super cheap. Great catch!!!

£5000 a year pays you around £55 at aldermore saving account.

Most bank charge £5 Monthly fee, do your sums.

Original Poster

Palwan13 m ago

£5000 a year pays you around £55 at aldermore saving account.Most bank c …£5000 a year pays you around £55 at aldermore saving account.Most bank charge £5 Monthly fee, do your sums.



Presuming you were to get £55 interest, you'd be paying £60 minimum for a business bank account (unless you can tell me somewhere you can do business banking for less, which is the point of the deal)... better to do this? And you'd always have some balance in your business account (or risk going overdrawn/paying overdraft arrangement fees). This compensates you for that in a way.

But having looked at Aldermore Savings account rates, its 0.5% for the easy access, 1% for 6 months fixed and 1.3% for 1 year fixed.
Edited by: "skgwho" 16th Nov

skgwho5 m ago

Presuming you were to get £55 interest, you'd be paying £60 minimum for a b …Presuming you were to get £55 interest, you'd be paying £60 minimum for a business bank account (unless you can tell me somewhere you can do business banking for less, which is the point of the deal)... better to do this? And you'd always have some balance in your business account (or risk going overdrawn/paying overdraft arrangement fees). This compensates you for that in a way. But having looked at Aldermore Savings account rates, its 0.5% for the easy access, 1% for 6 months fixed and 1.3% for 1 year fixed.




You answered yourself 1.3% is £65.00

All I'm saying is it's not free, charges are hidden.

In case you are a fascinating type - tide.co/

I use Yorkshire bank. You get 25 months free business banking.

Palwan3 h, 14 m ago

£5000 a year pays you around £55 at aldermore saving account.Most bank c …£5000 a year pays you around £55 at aldermore saving account.Most bank charge £5 Monthly fee, do your sums.


You know this is a business account right? Most business accounts don't charge a monthly fee they charge per transaction over a certain amount.

You get charged to

Pay money in
Pay money out
Transfer money
Write cheques
Use the counter service is extra too

Rich443 m ago

You know this is a business account right? Most business accounts don't …You know this is a business account right? Most business accounts don't charge a monthly fee they charge per transaction over a certain amount.You get charged toPay money inPay money outTransfer moneyWrite chequesUse the counter service is extra too



Santander 7.50 a month free £1000 cash deposit per month unlimited free day to day transactions

What are the perks/benefits to having a business account over the usual current account
Edited by: "Turret" 16th Nov

Original Poster

kamran95584 h, 30 m ago

but for how long? im sure they will start charging you after 18/24 or so …but for how long? im sure they will start charging you after 18/24 or so months


For locking your money away for 1 year. I personally would rather not.

Had a look at tide but for anyone actually using their accounts, it's not cost effective.

Effectively if you make more than 16 transactions a month, this is cheaper (presuming you are counting "lost interest").
Rich4424 m ago

You know this is a business account right? Most business accounts don't …You know this is a business account right? Most business accounts don't charge a monthly fee they charge per transaction over a certain amount.You get charged toPay money inPay money outTransfer moneyWrite chequesUse the counter service is extra too



I've looked but can't find any business account which is without a monthly fee (hence why I posted this). Happy to be proven incorrect - any suggestions which bank may be free for business users?
kamran95584 h, 30 m ago

but for how long? im sure they will start charging you after 18/24 or so …but for how long? im sure they will start charging you after 18/24 or so months

Original Poster

Turret3 m ago

What are the perks/benefits to having a business account over the usual …What are the perks/benefits to having a business account over the usual current account


Other than separating business and personal transactions, nothing I'm guessing. But if limited company, HMRC may come knocking and treating the money in the account as a directors loan or dividends and tax accordingly. Doubt they would but if the question was asked, not sure what three legal position would be.

I will throw Tide into the mix - it's not a bank but a current account, but they are FCA regulated. It's all online (all customer service interactions are done via app), we've not had any issues so far, but I appreciate it won't be for everyone.

edit: fees are 20p per transaction - in or out - and £1 to use ATM.
Edited by: "sh20" 16th Nov

Hsbc Electronic Banking tariff is £5.50 per month with free electronic credits and payments. Would prefer free to be honest as it used to be!!

Hmm so why do you need a "business" account if you have a business? Why not just open a joint account in the names of the directors which will be free? Then amend your company records to link or reference this account as belonging to the business?

trd18 m ago

Hmm so why do you need a "business" account if you have a business? Why …Hmm so why do you need a "business" account if you have a business? Why not just open a joint account in the names of the directors which will be free? Then amend your company records to link or reference this account as belonging to the business?


Because you cannot do this for a Ltd company.... Be interesting explaining this to HMRC !
Edited by: "bobinda" 16th Nov

skgwho1 h, 20 m ago

Other than separating business and personal transactions, nothing I'm …Other than separating business and personal transactions, nothing I'm guessing. But if limited company, HMRC may come knocking and treating the money in the account as a directors loan or dividends and tax accordingly. Doubt they would but if the question was asked, not sure what three legal position would be.



Lawyer here.

For the love of God (and for a whole host of other reasons) do not utilise a personal bank account in this way.

Sole trader? Well, that's rather different. Feel free to use a personal bank account (preferably separate to the one you use for your normal day-to-day living!) to avoid business banking charges - but do check the T&Cs of the bank account to ensure utility of the account for commercial purposes is not forbidden.

kamran95586 h, 7 m ago

but for how long? im sure they will start charging you after 18/24 or so …but for how long? im sure they will start charging you after 18/24 or so months

Nope, they do not. I've had the business account with metro for nearly 3 years, and as soon as it hit 5k it became free.

Typical Lawyer, gives advice without any justification lol.

Why not? If the account holders match the directorship and the account is noted with HMRC as the business account and by definition as a business asset, what justifies the law not allowing this?

The business account offers little tangible benefit so to be forced to take them in law will encourage the banks to exploit this by charging for them too?!

trd15 m ago

Typical Lawyer, gives advice without any justification lol. Why not? If …Typical Lawyer, gives advice without any justification lol. Why not? If the account holders match the directorship and the account is noted with HMRC as the business account and by definition as a business asset, what justifies the law not allowing this? The business account offers little tangible benefit so to be forced to take them in law will encourage the banks to exploit this by charging for them too?!


Well firstly I'm sure your customers will think you are ever so professional for for having a company bank account with the payee as James Bloggs. Secondly, do you think the bank might not notice? Thirdly anti money laundering laws come intoplay much quicker with a personal account, try putting a heavy level of cash into it a couple of times without getting pulled into the managers office. You will be excluded from some merchant accounts. Not much of a problem these days, but good luck getting a cheque paid into a persons account in the company name.

It can also be classed that money held in a personal account for a LTD co is a loan. If HMRC investigates them for anything it is almost certain the bank account holder will be investigated too. It can also cause problems if a ltd co went under, and could blur the lines for limited liability.

I would rather pay the fees

If you choose to accept cheques that's a good point yes! Otherwise no problem if the customer pays with cash or card (via payment processor) and if you're clear to HMRC what the account is for, declaring it's wholly a business asset then no lines should ever be blurred over Ltd liability?

But hey you're probably right, if your business goes under it only takes one jobsworth between the bank and HMRC to kick off and the nearest lawyer will be gleefully arguing that all your actual personal assets are obviously part of the business too...

sh2010 h, 4 m ago

I will throw Tide into the mix - it's not a bank but a current account, …I will throw Tide into the mix - it's not a bank but a current account, but they are FCA regulated. It's all online (all customer service interactions are done via app), we've not had any issues so far, but I appreciate it won't be for everyone.edit: fees are 20p per transaction - in or out - and £1 to use ATM.


Tides seems great in terms of the concept, but they are being slated at the moment for technical and other problems. Check the comments section - moneysavinganswers.com/bus…ve/

Since business banking fees are an allowable expense, I'm not sure that too many people care about a £5-£10 standing charge of traditional banks.

mikedefieslife2 h, 23 m ago

Since business banking fees are an allowable expense, I'm not sure that …Since business banking fees are an allowable expense, I'm not sure that too many people care about a £5-£10 standing charge of traditional banks.


You are correct, I am with Nat West business, 2 years ago I paid out £61 in fees, last year £91, this year it will around £100(gone up to 35p per auto transaction) I don't like paying it on an account that has been in credit for 28 years but at the end of the day it has worked perfectly for 28 years. I won't be tying up £5k (which I am earning 3% on in Tesco for now) to get free banking.
Edited by: "asters" 17th Nov

mikedefieslife2 h, 12 m ago

Tides seems great in terms of the concept, but they are being slated at …Tides seems great in terms of the concept, but they are being slated at the moment for technical and other problems. Check the comments section - http://moneysavinganswers.com/business/banking/tide-the-business-bank-account-alternative/Since business banking fees are an allowable expense, I'm not sure that too many people care about a £5-£10 standing charge of traditional banks.


Yes I still think they have a lot to prove but as a cheap and fast bank account it's been fine for us so far. We got screwed by Santander losing our ELECTRONIC application, then we had less than 10 days until we needed the account by, so Tide was a no brainer, we'll stay unless we have reason to leave.

trd17 h, 36 m ago

Typical Lawyer, gives advice without any justification lol.



Actually, most lay clients, I find, don't really care for the ins-and-outs chapter and verse justification. They just want to know the bottom line.

trd17th Nov

If you choose to accept cheques that's a good point yes! Otherwise no …If you choose to accept cheques that's a good point yes! Otherwise no problem if the customer pays with cash or card (via payment processor) and if you're clear to HMRC what the account is for, declaring it's wholly a business asset then no lines should ever be blurred over Ltd liability? But hey you're probably right, if your business goes under it only takes one jobsworth between the bank and HMRC to kick off and the nearest lawyer will be gleefully arguing that all your actual personal assets are obviously part of the business too...



When the bank finds out that you are using a personal account for business transactions, they'll close it and all other accounts of the account holders.

Mazel Tov!

Accuse me of being a pessimist about the fee free banking.
As long as you keep your balance over £5000, it doesn't necessarily mean it's free, because they probably pay you s#it for having the money with them anyways.
I have an account with Lloyd's TSB and they offer the same deal in a round about way. They charge the fees and then refund them at the end of the statement. Oh! And you don't need a balance of £5000.
Not voted either way.
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